What Are The Top 10 U.S. Banks With The Best Earnings Performance Over The Past 15 Years?‍

Over the course of their existence, these banks have had the best overall return on assets

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As the market calms down after the pummelling of financial stocks in the wake of Silicon Valley Bank's failure and Signature Bank of New York's failure, it might be a good idea to keep your concentration on maintaining consistent quality during this time.

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The following is a list of the best-performing banks in the United States and the best-performing bank holding companies over the past 15 years in terms of average returns on assets (ROAA). There is a possibility that investors seeking bargains might find this information useful, following a 25% decline for the KBW Nasdaq Bank Index BKX for one week through Monday of this week. The financial sector of the S&P 500 SPX fell by 12% at the same time. (All returns in this article include reinvested dividends.)

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There are some stocks that look like they are being overvalued, at least when they are compared to their average price-to-tangible-book-value ratios over the past few decades.

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What does a bank do? The waters can get a bit murky sometimes since some people might think that a bank that provides brokerage and investment-banking services isn't a "real" bank because it provides brokerage and investment-banking services as well. It might also be said that credit-card lenders are in a similar position.

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As a starting point, we chose to use the Russell 3000 Index RUA in the following screen, which is designed to include approximately 98% of the publicly traded U.S. companies based on their market capitalization.

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The only way we could verify whether certain companies, like Discover Financial Services DFS, were really bank holding companies was to examine the business descriptions contained in their 10-K filings or to visit the National Information Center of the Federal Financial Institutions Examination Council, where anyone can search for a financial company and access its Consolidated Financial Statements for Bank Holding Companies, if applicable. 

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The Russell 3000 index revealed that there were 78 banks or bank holding companies that had total assets of at least $20 billion as of December 31 that were part of the Russell 3000. It includes the failed Silicon Valley Bank, which was controlled by SVB Financial Group SIVB, as well as Signature Bank SBNY of New York, but neither of these banks ranked within the top 20 for ROAA for 15 years (or 10 years through December 31) of the past decade.

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Best-performing banks over the past 15 years

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Based on 15 years of annual data provided by FactSet for all banks and bank holding companies in the Russell 3000 index with total assets of at least $20 billion as of December 31, the following 10 banks and bank holding companies had the best returns on average assets based on 15 years of annual data:

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American Express Co.

Discover Financial Services

Bank OZK

Raymond James Financial Inc.

Stifel Financial Corp.

Home BancShares Inc.

Prosperity Bancshares Inc.

U.S. Bancorp

Commerce Bancshares Inc.

Capital One Financial Corp.

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There might be one or more companies in this list that would be of interest to you, so your next step should be to do your own research and form your own opinion of how well it may perform over the next decade, at least.